TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 20, 2022
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to increase Contract 98-RFP-10 Design, Build, Own, Finance, Operate and Maintain a 150 Dry Tons Per Day Biosolids Processing Facility at the Stickney Water Reclamation Plant and Beneficially Use the Final Product for a Period of 20 years, to Metropolitan Biosolids Management, L.L.C., in an amount of $1,300,000.00 from an amount of $190,610,363.72 to an amount not to exceed $191,910,363.72, Account 101-69000-612590, Purchase Order 5000950
Body
Dear Sir:
On December 21, 2000, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 98-RFP-10 Design, Build, Own, Finance, Operate and Maintain a 150 Dry Tons Per Day Biosolids Processing Facility at the Stickney Water Reclamation Plant and Beneficially Use the Final Product for a Period of 20 years, to Metropolitan Biosolids Management, L.L.C., in an amount not to exceed $217,169,089.74. The contract expires July 1, 2030.
As of October 4, 2022, the attached list of change orders for the service portion of the contract has been approved.
Service Portion of the Contract:
Original Contract Amount $127,997,551.16
Date of Board Approval 12/21/2000
Cumulative Change Order Value (10/4/2022) ($20,510,395.30)
% Change of Original Contract Value -16.0%
Current Contract Value $107,487,155.86
Requested Increase or Decrease $1,300,000.00
New Contract Value $108,787,155.86
% Change of Current Contract Value 1.2%
% Change of Original Contract Value -15.0%
Due to escalated variable and fixed costs to operate and maintain the facility, an increase in contract value is being requested for 2022. The variable costs are based on utility prices and tied to the market price for natural gas, some of which must be purchased on the open market in addition to the digester gas the District produces and supplies for the facility’s operation. The fixed costs, which include all other costs to operate and maintain the facility are adjusted based on the Consumer Price Index (CPI) and the Producer Price Index (PPI). The CPI, PPI, and energy costs have all experienced sharp increases this year. Therefore, the requested increase is the result of inflation and the higher than anticipated cost of energy. This change order is in compliance with the Illinois Criminal Code since the change is due to circumstances not reasonably foreseeable at the time the contract was signed and is in the best interest of the District.
It is hereby recommended that the Board of Commissioners authorize the Director of Procurement and Materials Management to execute a change order to increase the service portion of Contract 98-RFP-10 in an amount of $1,300,000.00 (approximately 1.2% of the current service portion of the contract) from an amount of $107,487,155.86 to an amount not to exceed $108,787,155.86.
Funds are available in Account 101-69000-612590.
Requested, John P. Murray, Director of Maintenance and Operations, EJS:JS:MAG:JR
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for October 20, 2022
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